SB 24-062

Senate Bill 24-062, which has been signed into law, stops personal injury lawyers in Colorado from charging contingency fees on the interest that accumulates at a rate of 9% on damages awarded after July 1, 2024. This means that while plaintiffs can still receive this interest as part of their settlement or judgment, their attorneys won't be able to take a portion of it as payment for their services. The law affects personal injury cases and the financial arrangements between lawyers and clients in these cases. Since the bill has been signed, it will become enforceable on its designated start date.

Official Summary

Current law permits a plaintiff in a personal injury case stemming from a tort to claim interest at a rate of 9% on the damages alleged from the date the action accrued until the date the judgment is satisfied. Beginning July 1, 2024, the bill prohibits a plaintiff's attorney from collecting attorney contingency fees based on that portion of the ultimate damages award attributable to the 9% interest. (Note: This summary applies to this bill as introduced.)